According to CEO Changpeng "CZ" Zhao, Binance created a $1 billion or more recovery fund to buy distressed crypto assets.
We can allocate more, CZ added, according to the news source, if that isn't enough.
Following the demise of FTX and its CEO Sam Bankman-Fried, CZ has emerged as a key figure in the sector over the past few months, solidifying his status as a key leader. On Twitter earlier this month, he voiced his worries about FTX and canceled a proposal to buy it to help it out of its financial difficulties.
A number of businesses, including lender BlockFi, are reportedly planning for bankruptcy as a result of the industry-wide effects of FTX's insolvency.
Binance officially announced information about its recovery fund on Nov 24, called the Industry Recovery Initiative (IRI).
As a result, Binance has disclosed the wallet address where 1 billion BUSD would be sent to the Industry Recovery Initiative. Other parties confirmed to participate include Jump Crypto, Polygon Ventures, Aptos Labs, Animoca Brands, GSR, Kronos, and Brooker Group – with a total committed value of $50 million.
Some key facts about IRI:
- The IRI will not be an investment fund.
- Parties in IRI must commit capital to invest in the fund.
- Members of IRI, including Binance, will evaluate projects independently and make decisions to help from there.
- IRIs can include traditional investment funds.
- The fund will disburse within 6 months, considering investing in equity, tokens, cash, bonds, etc.
- Participants can withdraw the remaining amount after the end of the disbursement period.
GameFi.org is a one-stop destination for web3 gaming. We aim to build digital communities and manage virtual economies for mainstream adoption. GameFi.org offers a suite of solutions covering the entire games and gamified projects' lifecycle, following a vision of one digital platform, and one virtual identity requiring zero blockchain knowledge. Visit https://gamefi.org/ for more information.